US credit crisis pushes up NZ mortgages

The US credit crunch has finally hit New Zealand home-buyers directly in the form of rising mortgage rates. Westpac yesterday raised its fixed rate mortgages by 20 points, taking its two-year fixed rate from 9.4 per cent to 9.6 per cent. The increase matches moves by New Zealand’s largest bank, ANZ National, within the last […]

Are The Banks In Trouble?

By Mike Whitney      “The new capitalist gods must love the poor – they are making so many more of them.” Bill Bonner, “The Daily Reckoning”   “The hope of every central bank is that the real problem can be kept from public view. The truth is that the public—even professionals on Wall Street—have no […]

Homes entering foreclosure at record

The housing slump, Midwestern economic woes and resetting ARMs send late payments higher. By Les Christie, CNNMoney.com staff writer September 6 2007: 11:58 AM EDT NEW YORK (CNNMoney.com) — The delinquency rate for mortgage borrowers spiked higher in the second quarter and the number of homes entering the foreclosure process hit a record high, according […]

Fed warns of $100bn credit losses

  Ben Bernanke’s comments are closely watched Federal Reserve chairman Ben Bernanke has warned that the crisis in the US sub-prime lending market could cost up to $100bn.In a second day of testimony to Congress, Mr Bernanke said credit losses associated with sub-prime mortgage failures were “significant”. Wall Street is nervous about the exposure of […]

The Real Cost of a Picket White Fence: 3 Housing Factors to Think About; Prices set at the margin, income discrepancies, and bubble euphoria.

After drinking water out of the bailout fire hydrant, I think most people are scrambling to get an idea of what is happening. An issue placed on the back burner by many politicians is suddenly garnering massive media playtime. Amazingly, Americans in a large percentage are against any bailout talks or consideration. The nationwide MSNBC […]

John Key’s policy: There’ll be more, later

By Paula Oliver The National Party heads into the opening of its annual conference tonight fending off claims that it has little in the way of policy to support its healthy poll ratings. The party’s 71st annual conference will stretch throughout the weekend but it is not expected to offer much in the way of fresh […]

Despite the Mortgage Crisis, Hedge Funders Are Still Raking It in

Despite the Mortgage Crisis, Hedge Funders Are Still Raking It in. By Sarah Anderson, AlterNet. Posted August 29, 2007. The little guys may be hurting, but fear not for the titans of capital. You’ve probably been staying up nights worrying about how hedge fund managers are going to weather the credit crunch stemming from the […]

U.S. at risk of recession from housing

By Mark Felsenthal and Alister Bull JACKSON HOLE, Wyoming (Reuters) – The weak housing market could topple the country into a full-blown recession and the Federal Reserve should slash interest rates aggressively, one of the country’s most prominent economists warned on Saturday. “Lower interest rates now would help,” Martin Feldstein, president of the influential National […]

Ultra-low Fed rates stoked housing boom: Taylor

By Alister BullJACKSON HOLE, Wyoming (Reuters) – In rare public criticism of Alan Greenspan, former U.S. Undersecretary for International Affairs John Taylor said on Saturday that ultra-low Federal Reserve interest rates had stoked the U.S. housing boom and subsequent bust. Greenspan, who retired as chairman of the Federal Reserve in January 2006, slashed rates to […]

Economist eyes home value dive: Others skeptical of 50 percent decline

By Edward B. Colby Saturday, September 1, 2007 – Updated: 08:38 AM ESTThink the subprime mortgage meltdown was frightful? Now consider the prospect of your home losing half its value. An esteemed economist suggested yesterday that “real home prices” in some parts of the country could drop by as much as 50 percent, posing yet […]

Danger of ‘run’ on all finance firms

By NICK CHURCHOUSE – The Dominion Post | Saturday, 1 September 2007 A growing panic is creeping into finance company investors, but it is exactly that which will see them lose more money, experts say. Stories of investors turning up at finance companies to demand their money back are becoming more common, but the financial […]

Australian Trade Deficit Grows: It’s Bad To Owe More Than You Own

Posted by Dan Denning Leaderless, directionless, and clueless. That’s how we’d describe the state of the local and global market. The problem is the “known unknowns” (US$43 billion of them) and those pesky “unknown unknowns” (credit derivatives). More on that below.First, did you see the current account deficit widened to nearly AU$16 billion in the […]

Hostile Takeover: The Corporate Control of Society and Human Life

by Stephen Lendman Large transnational corporations are clearly the dominant institution of our time. They’re preeminent throughout the world but especially in the Global North and its epicenter in the US. They control or greatly influence what we eat and drink, where we live, what we wear, how we get most of our essential services […]

The social toll of the US home mortgage crisis

Part 1 By Andre Damon 31 August 2007 The following is the first in a two-part series. Home foreclosures in the US have reached near-epidemic scope and scale. In Detroit, there was one foreclosure filing for every 97 households in July alone, according to RealtyTrac.com, the largest database of foreclosed properties. Michigan, Georgia and California […]

Why The Bursting of the Housing Bubble Will Bring About the Modern 1930s

Thomas Au is author of “A Modern Approach to Graham & Dodd Investing.” This article was previously published on TheStreet.com’s “Street Insights.” *The bursting of the housing bubble means that band-aid has been ripped off the country’s Achilles heel, the cash-strapped average American consumer. * The resulting two-decade pullback in living standards would represent “the […]

US Dollar Warning – This is going to dramatically affect you …

Larry Edelson writes: By every measure under the sun, the dollar is getting creamed, just like I told you it would. It recently hit a 25-year low against the British pound … a record low against the euro … a 12-year low against the Thai baht … and a seven-year low against a third-world currency, […]